In the fiscal year ending March 31, 2024, Canadian federal and provincial governments earned a combined $15.7 billion from the control and sale of alcohol and recreational cannabis. This represents a 1.1% increase from the previous fiscal year. Notably, earnings from alcohol decreased by 0.5% to $13.5 billion, while revenues from recreational cannabis rose by 12.6% to $2.2 billion.
Historic drop in volume of alcohol sales
Liquor authorities and other retail outlets reported $26.2 billion in alcoholic beverage sales for the same period, marking a 0.1% decline from the prior fiscal year. In terms of volume, alcohol sales fell by 3.8% to 2,988 million litres, the largest decline recorded since 1949. On average, Canadians of legal drinking age purchased 8.7 standard alcoholic beverages per week, down from 9.2 the previous year.
Record decline in beer sales
Beer sales experienced a significant drop, with volume decreasing by 4.5% to 1,950 million litres—the largest decline since tracking began in 1949. This marks the eighth consecutive year of declining beer sales by volume. The total value of beer sales fell by 1.3% to $9.2 billion. Beer maintained its position as the top-selling beverage category, accounting for 35.1% of total sales, though this is a significant decrease from 49.4% two decades ago.
Wine sales by volume declined by 4.8% to 476 million litres, marking the third consecutive year of decline. The total value of wine sales decreased by 0.3% to $7.8 billion. Similarly, spirit sales dropped by 0.5% to $6.9 billion, with volume decreasing by 3.9% to 184.9 million litres. Whisky, vodka, and liqueurs remained the top-selling spirits.
Recreational cannabis sales rise
Sales of recreational cannabis by provincial authorities and retail outlets reached $5.2 billion, an 11.6% increase from the previous fiscal year. This growth occurred despite a 2.8% decrease in the price of recreational cannabis between March 2023 and March 2024. Inhaled extracts were the fastest-growing cannabis category, up 31.4%, contributing to over two-thirds of the overall increase in cannabis sales.
The latest fiscal data reveals a notable shift in Canadian consumption patterns, with declining alcohol sales and rising cannabis revenues. This trend suggests evolving preferences and potential impacts on public health and the economy.